Nordea Bank Abp on Thursday reported a resilient third-quarter profit and announced a new 250 million euro share buy-back, as the Nordic lender prepares to unveil its next strategic plan in November.
Operating profit for the quarter was 1.6 billion euros, down 2% from a year earlier, as a drop in income from lending was partly offset by higher fee income and loan growth.
The company said net interest income, its main revenue source, fell 6% due to policy rate reductions, while net fee and commission income rose 5%.
Lending volumes increased, with both mortgage and corporate lending growing by 6% year-on-year, according to the bank.
The new buy-back program, set to begin around Oct. 20, continues the bank's policy of returning excess capital to shareholders, following the completion of a similar program in September.
Profitability remained strong with a return on equity of 15.8%, and the bank booked a net loan loss reversal of 19 million euros, citing exceptionally strong credit quality.
"This was another very solid quarter for Nordea, and we remain well on track to deliver a return on equity of above 15% for the full year," Chief Executive Frank Vang-Jensen said in a statement.
The company confirmed it will present its plans for the next strategy period and new financial targets at a Capital Markets Day in London on Nov. 5.
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Nordea Bank Abp on Thursday reported a third-quarter operating profit of 1.6 billion euros, as lending growth helped offset a decline in income from lower interest rates.
Nordea Bank Abp on Thursday reported a third-quarter operating profit of 1.6 billion euros, as growth in lending volumes was offset by a decline in interest income.
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